The Options Millionaire Why People Fail At Trading Options
Dec 12, 2023
They unpack why traders overestimate skills, lean on leverage, and let greed magnify losses. They revisit mistakes like holding through assignment and failing to cut losses. They discuss mindset barriers, delayed rewards, lack of accountability, and how life interruptions derail progress.
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Unwind Losing Trades Early
- Do unwind a losing trade early when it violates your risk rules instead of hoping for a rebound.
- Peter says selling after a 10% drop would have been the right unwinding decision that he skipped.
Greed Turned Insurance Into A Loss
- In 2021 Peter made big gains selling credit spreads, but in 2022 a crash turned spreads into 100% losses and he over-levered by re-entering too often.
- He risked 110% of allowed capital and lost 28% overall after greedily holding insurance instead of selling it.
Follow Your Risk Blueprint Religiously
- Control greed and follow risk parameters consistently; model accounts outperformed personal accounts when discipline was applied.
- Peter's model lost 3% in 2022 while his personal account lost ~28% because he deviated from the blueprint.